Options Scandal Investigations Heat Up With McAfee, CNET Firings

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Latest casualties of options scandal: McAfee, CNet executives pushed out [Mercury News]

Summary: Two Bay Area companies, McAfee, Inc. and CNET Networks announced several firings connected to their recently completed options backdating investigations. In addition, software company Adobe Systems announced yesterday that an internal investigation of option grants from 1997 through 2006 turned up evidence that records were changed after options were granted. At least 140 companies are involved in federal investigations or internal reviews relating to the options scandals. During its investigation, McAfee found abuses that would force it to wipe out $100 million to $150 million in earnings dating back 10 years after the company warned as recently as September that it probably would restate only earnings from fiscal 2003 and on. Losing their jobs yesterday were McAfee Chairman and CEO George Samenuk (who officially "retired") and President Kevin Weiss. Meanwhile, CNet disclosed the resignations of Chairman and CEO Shelby Bonnie, its general counsel and its head of human resources.
Related links: • More Trouble at CNET: CEO Axed, Revenue Below Guidance, Traffic Way Down • Cost of Options Backdating: $7.9 Billion of Market Value (and Counting) • Something's Rotten at Apple • Options Backdating: Merrill Lynch's Danger Stock List • Companies Implicated in Options Backdating Class Action Lawsuits • Updated WSJ Options Scandal Scorecard

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